From what we’ve seen so far this year, and the numbers that have come in from last year, collector car prices are at an all-time high right now, although some are skeptical about whether or not these numbers will have any durability.
In 2012, the world’s top ten cars were worth a combined total of just under $86 million. In 2013, however, that number jumped up to an astronomical $122 million. Some are saying this jump reminds them of the systematical economic increases that occurred prior to the 2007 catastrophe, but others believe these numbers may hold, if only for those cars that are unique and extremely rare.
We wrote earlier about cars being sold as artwork, and that appears to be where the market is taking classic car appreciation. If you are a classic car investor and hope to grow the value of your collection, the best advice in the financial world at the moment seems to point towards the most rare and exotic vehicles as the ones worth collecting. The investments that are collecting the most are coming from cars considered to be one-of-a-kind models or custom jobs that truly are works of art.
However, don’t let this discourage you! As the average car collector knows, prices shift and change over the years, and a few downward years are just the calm before the upward “storm”. With a closer look at all of the “regular” classic car markets, Hagerty’s British Car Index increased by 5 points this year, and all of the American markets (American Muscle, 1950’s American, Affordable Classics) all remain steady, or have even gained a point or two on the charts.
So while some markets are certainly skyrocketing, and some seem to think that is cause for worry, the fact is, these classic car collections will be around much longer than this year’s predictions, and they can certainly outlive any swing in the market.
Don’t ever let your collection go unprotected, however, as there is no quicker way to devalue what you’ve worked so hard to build. Ride out the financial storms and finish strong with collector car insurance from Classic Auto. Give us a call today at 888-901-1338 for a free quote!
About the Author
Drew Yagodnik is Vice President of Classic Automobile Insurance Agency, Inc. Classic Automobile Insurance Agency has been protecting collector, classic and exotics since 1992.